The trillion dollar coin

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Lt. Staplic
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Re: The trillion dollar coin

Post by Lt. Staplic »

Sonic Glitch wrote:
Lt. Staplic wrote: So when the Government prints more money they're not actually creating more value, but just dividing the existent value between more money. This is reflected in rising prices, it's why things cost $5 now that used to cost $.5. So if the Government minted two trillion dollars and started paying people with them the purchasing power of a dollar would go to shit so the $100,000 you have saved up for your kids college education now barely pays for day's groceries.
We call that inflation ;)
ya, but it doesn't do much good to say "When the Government prints more money it's inflation" when I'm trying to explain it :P
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Re: The trillion dollar coin

Post by Mikey »

It's also deceptively over-simplistic. It's a cause of inflation, not the cause of inflation. In Germany in the years after WWI, it took a wheelbarrow full of deutschemarks to buy a loaf of bread. This isn't entirely due to Germany's minting policies at the time. In the same way, to explain inflation in a simple sentence would be just to say that devaluation of currency leads to inflation. That devaluation, however, can be due to myriad different causes. Even simple economic success, booms or even just a steadily bullish market, will engender inflation simply by the fact of a greater amount of available disposable income (at least, until the same rate of inflation catches up to COL.)
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Re: The trillion dollar coin

Post by Uzume »

:dogrun:... I motion to go "off topic".

Unicorns and rainbows...........yeeaaaa
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Re: The trillion dollar coin

Post by Mikey »

Unicorns and rainbows are one of the foremost causes of inflation in our time. It's a very obscure mechanism, but trust me. :mrgreen:
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Re: The trillion dollar coin

Post by McAvoy »

Uzume wrote::dogrun:... I motion to go "off topic".

Unicorns and rainbows...........yeeaaaa

Lay off the drugs... :P
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Re: The trillion dollar coin

Post by Tsukiyumi »

Believe it or not, that had nothing whatsoever to do with drugs, only a sincere desire to get off of the current topic. :lol:
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